Impac Mortgage Holdings, Inc. (IMH) is publicly traded on the NYSE and through its subsidiaries, provides mortgage and real estate services, including mortgage lending, portfolio loss mitigation and real estate services, and title and escrow services. The Company's operations include the management of the long-term mortgage portfolio, including the residual interest in securitizations, to mitigate losses and maximize cash flows and the mortgage and real estate related fee-based business activities. The development of these business activities focuses on vertical integration of a centralized platform which can operate synergistically to maximize revenues and profits. ---------------------------------------------------------------------
IMPAC Mortgage Holdings, 9.125% Series C Cumul Redeem Preferred Stock Ticker Symbol: IMPHO CUSIP: 45254P409 Exchange: OTOTC Security Type: Traditional Preferred Stock
| IMPAC Mortgage Holdings Inc., 9.125% Series C Cumulative Redeemable Preferred Stock, liquidation preference $25 per share, redeemable at the issuer's option on or after 11/23/2009 at $25 per share plus accrued and unpaid dividends, with no stated maturity, and with distributions of 9.125% ($2.28125) per annum paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the first calendar day of the month in which the payment is due or on the date fixed by the board, not more than 60 days or less than 10 days prior to the payment date. Dividends paid by preferreds issued by REITs are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below. |
Stock
Exchange | Cpn Rate
Ann Amt | LiqPref
CallPrice | Call Date
Matur Date | Moodys/S&P
Dated | Distribution Dates | 15%
Tax Rate |
| OTOTC | 9.13%
$2.28125 | $25.00
$25.00 | 11/23/2009
None | NF / NF
4/10/13 | Suspended!
3/31, 6/30, 9/30 & 12/31
| No |
Parent Company Ticker: (IMH) | Notes: Dec. 10, 2008 -- Impac Mortgage Holdings, Inc. announces that the Board of Directors will not be declaring, and the Company will not pay, a fourth quarter 2008 dividend on the Company's 9.375% Series B Cumulative Redeemable Preferred Stock (Pink Sheets: IMPHP) and 9.125% Series C Cumulative Redeemable Preferred Stock (Pink Sheets: IMPHO). Although the Company will not be making the fourth quarter 2008 dividend payment, unpaid dividends on the preferred stock will accumulate. Until such time as all cumulative dividends on the preferred stock are paid, the Company may not pay dividends on, nor redeem, repurchase or make any distribution on, shares of its common stock. If the Company does not pay dividends on its preferred stock for six or more quarterly periods (whether or not consecutive), preferred stockholders will be entitled to elect two additional directors to the Company's Board of Directors to serve until all dividends are paid. The Board of Directors also approved the deferral of the payments of interest on its four series of trust preferred securities. The Company is deferring interest on the Impac Capital Trusts #1, #2 and #4 securities due January 30, 2009, and interest on the Impac Capital Trust #3 securities due December 30, 2008. The Company has the right to defer payment of interest on the Securities for a period of up to 4 consecutive quarterly interest payment periods for Impac Capital Trust #1, #2, and #3, and 20 consecutive quarterly interest payment periods for Impac Capital Trust #4. Pursuant to the terms of the trust preferred obligations, the deferral of interest payments is not deemed an event of default. During the deferral period, interest on the trust preferred securities will bear additional interest at a rate equal to the coupon rate on the respective security. Unless the Company again elects to defer interest payments, the Company is required to pay all accrued interest together with the additional interest at the next payment date. Furthermore, during the time that the Company defers interest payments, it may not, with limited exceptions, pay dividends on or redeem or purchase its capital stock nor make any payments on outstanding debt obligations that rank equally with or junior to the trust preferred obligations and, in some cases, it may not allow subsidiaries to pay dividends. The Company intends to offer cash of $100.00 for every $1,000.00 of trust preferred securities outstanding under each of its Impac Capital Trusts #1, #2, #3 and #4, which offer will expire on December 30, 2008. |
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What is the book value per preferred share?
Total liquidation value of the preferred stock is $51.7 million, as found in the equity section of the company's balance sheet. The company has about $28 million (as of 9/30/2013) in stockholder's equity. In the event of the company being liquidated, this stockholders equity would be paid to preferred stockholders first. Despite the fact that these preferreds have suspended dividends, it is questionable to assume dividends could be restored to the common while the liquidation value is not fully met by book value.
SOURCE: 1st Q 2013 SEC 10Q filing, Balance Sheet
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What is the value of the company's Net Operating Losses?
On September 4th, 2013, the company adopted an agreement to preserve their massive Deferred Tax Assets. These assets have a full valuation allowance against them, meaning that they are carried on the books at $0. All shareholders would see book value climb significantly if these assets are activated. As an example, in May 2013, Fannie Mae reported the largest profit in their history by declaring that there DTA had value of nearly $50 billion. Other companies such as Freddie Mac, Radian, and MGIC Investment Corp. also have massive Deferred Tax Assets with full valuation allowances. This preferred stock represents the steepest discount to book value of all of these company's equity.
SOURCE: 2nd Q 2013 SEC 10Q filing, page 43
Recent Company News
Recent Macro Economic News
*Mortgage Lending Reaches 5-Year High
August Existing-Home Sales Rise, Limited Inventory Continues to Push Prices
Single-Family Production Pushes Housing Starts Up in August
| Restructuring and Strategic Options for Preferred Stock |
Cash or Stock Tender offer - NBG, Regions, Duff and Phelps, IPG, Pitney Bowes, HBAN, Suntrust, RBS (prior to dividends resumed)
Conversion to Common Stock - Citigroup, Bank of America, Keybank
Redemption - Brookfield, Emmis, CVS, and GE
Dividends Resumed - Felcor , Grammercy, Ford, Lloyds Banking, and RBS (after tender offer)
Warrants Used - Goldman Sachs |
Other Examples of Tender Offers and Restructurings:
Multiple Options with Tender Offer for Subordinated Debenture - Assured Pharmacy
Convertible Countrywide Debentures - Bank of America
58 cents on the dollar for Debentures - Liberty Media
Tender offer Increased and Extended - Toys R Us
51 Cent Tender Offer on Debentures - Cox Communications
Dutch Auction Method Cash Tender - ITT Corp
0% Debenture tendered for 87 cents - GAMCO |
For those of you interested in following the case updates on Timm vs Impact Mortgage, here is the official link from the Baltimore, MD district court where you can see the case progress.
http://casesearch.courts.state.md.us/inquiry/inquiryDetail.jis?caseId=24C11008391&loc=69&detailLoc=CC